Swedish govt commission eyes 15 pct payroll tax on banks -source

Reuters Staff

2 Min Read

STOCKHOLM, Oct 7 (Reuters) - A Swedish government commission will likely propose an additional 15 percent payroll tax on financial services firms when it reports next month, a source familiar with the matter told Reuters on Friday.

Sweden’s centre-left government has been trying to impose a tax on financial services, which are exempt from value-added tax, but has struggled to come up with a technical solution for the tax.

“The proposal will mean a 15 percent payroll tax on VAT-exempt financial services,” the source said, adding it would affect not only banks.

“It will hit all companies which have revenues from financial services, which is many,” the source said.

The head of the government commission, Christer Sjodin, declined to comment.

Industry lobby groups and a trade unions representing bank workers said last month an extra payroll tax on financial companies in Sweden could cost up to 16,000 jobs.

On Thursday, a budget document seen by Reuters showed neighbouring Norway’s right-wing government plans to impose a 5 percent payroll tax on the banking industry in 2017.